TROY, Mich., March 12, 2018 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) today reported that its wholly owned subsidiary Flagstar Bank, FSB, has closed its previously announced transaction to purchase the mortgage warehouse loan portfolio from Santander Bank, including approximately $1.7 billion in mortgage warehouse loan commitments. Terms of the transaction were not disclosed.
"We're delighted to welcome Santander's customers and employees to Flagstar," said Alessandro DiNello, president and chief executive officer of Flagstar Bancorp, Inc. "This transaction combines two talented warehouse teams dedicated to customer service, and the biggest winner is our new, combined customer base that will now be dealing with the fourth largest warehouse lender in the country. Customers can look forward to custom-crafted solutions delivered by knowledgeable, experienced warehouse lenders.
"The purchase also adds volume in an attractive asset class with good spreads and very low credit risk. It's complementary to our existing business, bringing relationships that average around $40 million in commitments—four times larger than our existing book. While the pricing is slightly narrower than Flagstar's book, these loans typically have approximately 50 percent longer days-on-line and so enhance our net interest income. We plan to add the new business to our existing platform."
The acquisition is expected to reduce the Company's Tier One leverage ratio by approximately 40 basis points and should be moderately accretive to 2018 earnings.
Flagstar Bancorp, Inc. (NYSE: FBC) is a $16.9 billion savings and loan holding company headquartered in Troy, Mich. Its wholly owned subsidiary Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 99 branches in the state. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 89 retail locations in 29 states, representing the combined retail branches of Flagstar Bank and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and record keeping for $98 billion of home loans representing over 442,000 borrowers. For more information, please visit flagstar.com.
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Flagstar Bancorp, Inc.'s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements can be found in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission, which are available on the Company's website (flagstar.com) and on the Securities and Exchange Commission's website (sec.gov). Other than as required under United States securities laws, Flagstar Bancorp does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
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SOURCE Flagstar Bancorp, Inc.